Financing
New Home Financing Options
Wondering who to call to get your new construction home financed? Don’t worry, we’ve got you covered. Vazquez Family Builders has partnered with Countrywide Mortgage Lenders, LLC to provide loans to qualifying applicants. Additionally, we work with several other local lending institutions that offer specialized loan programs for new construction home buyers and remodeling clients.
Option
ONE
Construction to Permanent Loans (Used if building a new custom home)
A construction to permanent loan is a one-time close loan that allows the buyer to secure financing for their new home at the beginning of construction. Once the home is completed, the loan transitions into a permanent fixed long-term mortgage. This eliminates the need for multiple closings and saves buyers time and money.
Benefits Include:
- Use the equity in your current home and builder deposit as a credit toward the down payment
- Save time and money with one approval and one closing
- Protect against rising interest rates by locking in your rate
- Reduce principal balance using proceeds from the sale of your existing home
- Interest-only payments during construction
- Builder manages the construction process and works directly with the lender
- Possible tax-deductible interest charges during the construction period
- Potential builder credit for closing costs and interest payments during construction
Terms are subject to lender approval and program availability. Borrower must qualify.
Option
TWO
Extended Rate Lock Program (Used to buy homes already under construction)
If you are purchasing a home currently under construction but not yet completed, this program allows you to lock in your interest rate to protect against potential rate increases until the home is finished.
Benefits Include:
- Float-down options if rates improve before closing
- Upfront loan fees are credited toward future closing costs
- Rate locks available for up to 12 months
- Competitive 90, 120, and 180-day rate locks for homes already under construction
Terms are subject to lender approval and program availability. Borrower must qualify.
Option
THREE
Standard Fixed or Adjustable Rate Mortgages
These traditional mortgage options are available from most lenders for purchasing a new construction home. Interest rates vary based on credit profile, down payment, and market conditions.
Option
FOUR
Lot and Land Loans
If you’ve found the perfect homesite but are not ready to build immediately, a lot or land loan allows you to secure the property now and build later.
Benefits Include:
- Flexible terms with interest-only payment options
- Ability to finance the lot and roll it into a construction loan when ready
- Option to use equity in the lot toward the construction loan down payment
Opton
FIVE
Bridge Loans (For those transitioning from an existing home)
A bridge loan is a short-term financing solution that allows you to purchase or build your new home before selling your existing home.
Benefits Include:
- Use equity in your current home to finance a down payment on your new home
- No need to wait for your current home to sell before starting construction
- Interest-only payment options available
Option
SIX
FHA & VA Construction Loans (For eligible buyers)
If you qualify for an FHA or VA loan, you may be able to build your home with low down payment requirements and flexible credit guidelines.
Benefits Include:
- Low or no down payment requirements
- Competitive interest rates
- No private mortgage insurance (PMI) for VA loans
- Government-backed financing protection
Standard Fixed or Adjustable Rate Mortgages
Do I Need to Be Pre-Approved to Buy a New Construction Home?
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